Two entertainment agencies have joined hands with KT to produce holographic images of their stars.

SM Entertainment and KT announced Monday that they signed a memorandum of understanding to this effect. Under the MOU, SM will develop content, while KT will provide theaters customized for holographic movies.

SM has been showcasing virtual-reality concerts, using holographic technology, since last August.

Another big-name agency YG, which has also joined the move will open a K-pop Park within the Everland amusement park in July.

Before the official opening, 3D music videos of Psy's "Gangnam Style" and "Gentleman" will be showcased at an IT show to be held on May 21 at the COEX in Seoul.

The company will also develop 3D content featuring 2NE1 and Big Bang by September.